Set up a Business for Selling Cosmetics in Spain

Updated on Tuesday 17th September 2019

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In order to set up a business that sells cosmetic products in Spain, it is necessary to take a set of measures that ensure the fact that the products are well stored. As member state of the European Union (EU), Spain has transposed in its national legislation the regulations that were created for the sale of cosmetics in EU.

However, the country has its own regulations addressed to businesses in the cosmetic industry and our team of Spanish lawyers can provide an in-depth presentation on the applicable rules of law. It is necessary to know that the laws regulating the cosmetics industry in Spain were recently modified through a Royal Decree, created to increase the level of safety in this sector.

What are the main rules of law on cosmetics in Spain?

Businessmen who want to start a company in Spain, that will sell cosmetics on the local market, have to follow the rules prescribed by the Cosmetics Regulation (Regulation EC No. 1223/2009). This rule of law was created to increase the level of protection of the European consumers purchasing cosmetics products, but it was also designed to establish simpler trading procedures for the states in EU. Thus, this rule of law will also concern businessmen that are involved in the import or export of cosmetics products from and into Spain.

Recently, the Spanish legislation regulating the cosmetics market was improved, by adding a new regulation, which was enacted in 2018, through the Royal Decree 85/2018. Our team of Spanish lawyers can present the latest provisions that have to be respected by cosmetics businesses, but some of the basic points of the new law are presented below:

• the legislation establishes which of the Spanish authorities are entitled to monitor the activity of the cosmetics industry;
• it establishes the types of rights the local authorities have in inspecting cosmetics businesses;
• it also sets up the powers that the local authorities have in respect to the implementation of various health protection measures;
• it also provides a clear understanding on the labelling requirements that have to be found on cosmetics traded in Spain;
• the legislation regulates the import-export control system and the system applicable to the manufacturing of cosmetics in Spain.

It is also important to know that the new regulation aims at including all the parties that are involved in the cosmetics market in Spain – the manufacturers, businesses developing import or export activities, those activating as distributors, the companies selling cosmetics in this country, but also the consumer market. According to the new decree, the main institution which was appointed to monitor the cosmetics industry in Spain is the Spanish Agency of Medicine and Health Products.

What is the size of the cosmetics market in Spain?

It can be a great idea to enter the cosmetics industry in Spain, as this country is one of the leading European countries in this industry. More than this, at the level of 2018, the country recorded the fourth consecutive year of growth; another advantage to start a business in Spain for the sale of cosmetics is given by the fact that the country is a top exporter of cosmetics. Our team of Spanish lawyers can provide advice on the import-export rules applicable to cosmetics businesses and investors must know that this market is characterized by the following:

• Spain is the 5th European market on the consumption of cosmetics products and perfumes;
• in 2018, the perfume and cosmetics market increased by 2%, accounting for EUR 6,954 million;
• the market growth in 2015 stood at 3.5%, while in 2016, it accounted for 2.15%;
• the Spanish consumers who purchase perfumes and cosmetics in Spain spend an average of EUR 150 per year;
• the average spending is above the European one, which stands at EUR 137;
• at the level of 2018, the total value of exports accounted for EUR 4,260 million (perfumes and cosmetics);
• the level of exports marked an increase of 10% in 2018 compared to 2017.

How can a company import cosmetics into Spain?

The manner in which a business can enter import-export activities in Spain is established under the EU Regulation. For this, each importer has to provide specific documents, referring to the formula used for the manufacture of the respective product. In this case, it is necessary to specify all the ingredients that were used and the exact percentage of ingredients.

The company must also provide a certificate of analysis and other certificates offering information on the safety of the products. Investors who want to sell cosmetics on the Spanish market are invited to contact our law firm in Spain for legal advice. Our team of Spanish lawyers can assist with information on the business permits that are required for this type of activity.